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57% won’t use CBA if commissions scrapped

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Rebecca Pike | 06 Dec 2018, 03:35 AM Agree 0
A survey showed brokers would cancel their accreditation or avoid the bank
  • Broker | 06 Dec 2018, 08:26 AM Agree 0
    And therein lies the problem , would've thought this figure should be 97%.

    How any Broker could sit in front of a client and recommended any positives from this bank is beyond me.
  • Observer | 06 Dec 2018, 08:40 AM Agree 0
    Just proves that brokers go where the commissions are and not for the best deal for the customer...
    • NQ Broker | 06 Dec 2018, 09:00 AM Agree 0
      Why would they go to CBA then? they do not offer the best commissions, they are far from it.
    • Broker | 06 Dec 2018, 09:15 AM Agree 0
      Observer - please enlighten us all as to why you believe that Brokers are attracted to CBA for some type of commission incentive , in comparison to which other lenders commission levels ??
    • keep obersving | 06 Dec 2018, 09:16 AM Agree 0
      Are you suggesting CBA has the "best deal" and brokers will boycott if they don't pay commissions?
      Well, as an experienced broker I can tell you CBA doesn't have the best pricing, products or policy...and people?...mmmmm best not to say anything
    • ABroker | 06 Dec 2018, 09:41 AM Agree 0
      I would would question the legitimacy of the Observer. Why shouldn't the broker go where the commission is...he/she has a business to run. Does the observer provided their service or work for their employer for free!! YAFW
    • Hmmmm | 06 Dec 2018, 09:46 AM Agree 0
      If CBA had the fortitude to back their statements and change their model I would have no issue whatsoever putting their offer on the table, in comparison to other banks/offers in existing model and let customer decide - don't think CBA would win that one though.
  • Old school broker | 06 Dec 2018, 08:53 AM Agree 0
    Haven't used CBA for years.....and yes surprised this isn't 97%.
    Does anyone remember the exact month/ year they introduced their $500 reaccreditation fee if you weren't sending them enough business? Would love to hear the ACCC thoughts on that maneuver......
  • Cynical | 06 Dec 2018, 09:23 AM Agree 1
    Why don’t brokers vote with their feet now? CBA has stated their intentions....
  • Broker | 06 Dec 2018, 09:34 AM Agree 0
    Observer - Just a little fact for you . The vast majority of lenders pay between 0.65% and 0.65% upfront commission , yet Bankwest pay 0.70%.

    Now I will let you explain why Bankwest has such a small market share , if Brokers are the commission hungry grubs that you are suggesting we all are.

    Awaiting your response , please remove foot from mouth first..
    • Broker | 06 Dec 2018, 09:38 AM Agree 0
      Between 0.63% and 0.65% I meant.
  • A nonymous | 06 Dec 2018, 09:49 AM Agree 0
    No Surprise. CBA is being forced to get out of the broker business so they have the most to lose. Well, CBA won't have to try that hard to lose brokers. Note to "Observer" - Nothing to do with commissions here. All about CBA's attitude towards brokers and the industry. Also, the $500 re-accreditation fee didn't last long. Scrapped after the first year. I remember kicking up a fuss over this nonsense.
  • experienced broker | 06 Dec 2018, 10:04 AM Agree 0
    Observer - CBA also had a requirement to send them x number of deals per year, otherwise they would cancel brokers accreditation. If they don't have the most suitable solution for the clients requirements and objectives, then rightfully so brokers shouldn't be sending them any business.
  • Jeff | 06 Dec 2018, 11:41 AM Agree 0
    I look far and wide to not use them. Arrogance of the organisation is amazing. A continuation of the former Head of Broker who always blamed brokers for all their issues.
  • WA Broker | 06 Dec 2018, 12:06 PM Agree 0
    I'm quite happy for CBA to go ahead and demonstrate to all that the customer should be paying the fee as in their opinion this is in the best interest for the customer. I dare CBA to remove commission payments to the broker and insist that the client is to pay directly. Once this occurs I will continue to provide CBA as an option (along with other lenders who offer the same product) and provide the client with a quote that if they want to go with CBA there is a service fee involved or with an alternative lender than no direct fee from them is required. As always any recommendations are based on the clients requirements. I'm pretty sure that I know what the customer will choose - I'm also convinced CBA know this and this is why they are trying to manipulate the industry and anyone who are silly enough to believe their dribble is not self serving.
  • Worried | 06 Dec 2018, 02:48 PM Agree 0
    Its a difficult time for every side involved to find a balance between customer outcomes and accountability to consumers and lending providers.

    We see this in our industry all to often, where we as brokers have peers falsifying documents or loans contracts simply to be able to receive higher commission payments. Now Fee For Service would completely remove the temptation for any broker to create false documents or loans however how do we continue to provide consumers with choice when the fee for service is only applied to on side of the coin.
    • Broker | 06 Dec 2018, 03:52 PM Agree 0
      We see this in our industry all to often, where we as brokers have peers falsifying documents or loans contracts simply to be able to receive higher commission payments. Now Fee For Service would completely remove the temptation for any broker to create false documents

      Sorry , but your comments are totally bizarre regarding each point raised
    • Worried | 06 Dec 2018, 04:33 PM Agree 0
      Broker - in what way. If a commission structure was removed from our remuneration, the temptation to write fraudulent loans or place clients into products and structures that are over inflated for their needs disappears, as the customer would be paying us a flat fee for our service.

      There is a story on this website currently that highlights Brokers specifically writing over $170m of loans fraudulently, now if they didn't receive any commission at all from these deals what would be their motivation to write that lending?

      Surely you don't have your head in the sand and think that there aren't brokers writing debt or placing customers into structures purely because of a higher commission structure?
    • Broker | 07 Dec 2018, 08:21 AM Agree 0
      Worried.

      1. Perhaps but they would still be committing fraud and just charging the client an inflated fee to commit this crime. When fraud is being committed, in a lot of cases their clients would be in on it too, as they also sign the A & L position etc.

      2. Fraud is fraud; irrespective of how a broker gets paid it will continue, no amount of compliance will stop this, nor would fee for service or a flat fee.

      3. If they do so, it is very short sighted, but again they would also continue to do this and just charged the client accordingly.

      I don’t see how slaughtering a Brokers income has anything to do with improving consumer outcomes or reducing fraud.
  • A common person | 06 Dec 2018, 04:06 PM Agree 0
    Observer

    Do you think broker should work for free for customers




  • Broker qld | 06 Dec 2018, 04:53 PM Agree 0
    Broker - it kind of makes sense but it isn’t worded well. If we don’t earn commission and the customer has to pay us up front we will be much pickier with what type of client we spend our time with and not willing to spend more time creating false documents etc.

    Well I think that’s what their point is anyway.
    • Broker | 07 Dec 2018, 08:46 AM Agree 0
      I think severely reducing a brokers incomes would make this type of Broker even more desperate. I assume that you mean income documents. It is the lenders responsibility to conduct the correct employment and incomes checks .

      Personally speaking for PAYG, in addition to payslips I always ask for a group certificate or ATO NOA even if the lender does not require it and if I think that bank statements showing income deposits are also required I will request those too. The banks technology is supposed to pick up any fraud within these docs
  • It's all over now baby blue | 07 Dec 2018, 05:21 AM Agree 0
    The whole point is what is the best outcome for the client. The best outcome is definitely NOT to support any lender who is trying to destroy the very industry that provides choice & competition. When the client come back in 12 months for advice only to find you are out of business (a very real possibility) they wont say thank you. More than happy to explain that to the RC or any other meddlers that want to listen.
  • Ex Banker | 08 Dec 2018, 12:18 PM Agree 0
    Its not a case of moving because commissions are scrapped - Its a case of 1 bank wanting to destroy your career or enterprise. On principle I don't know many who would support a business wanting to destroy you!
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